Refusing an order

There are a number of reasons for a firm refusing an order, and some of the most common are given below. Whatever your reason, you must be polite: the words reject and refuse have a negative tone to them, therefore it is better to use decline or turn down instead.

5.6.1

Out of stock

You may be out of stock of the product ordered, or indeed you may no longer make it. Note that, in either case, you have an opportunity to sell an alternative product (see 4.1.4), but remember not to criticize the product you can no longer supply.

We are sorry to say that we are completely out of stock of this item and it will be at least six weeks before we get our next delivery, but please contact us then.

We no longer manufacture this product as demand over the past few years has declined.

Thank you for your order for hea vy-duty industrial overalls. Unfortunately we have run out of the strengthened denim style you asked for. As you have particularly requested only this material, we will not offer a substitute, but hope we will get delivery of a new consignment within the next two months. We hope you will contact us then.

We received your order for A CN dynamos today, but regret that due to a strike at the ACN factory we are unable to fulfil the order, and we realize that other models will not suit your requirements. Hopefully the dispute will be settled soon so that we will be able to supply you. You can rely on us to keep you informed of the developments.

5.6.2

Bad reputation

The customer may have a bad reputation for settling their accounts or, in the case of a retailer of, say, electrical or mechanical products, may have offered a poor after-sales service which could in turn affect your reputation. In these cases, it is better to indicate terms on which you would be prepared to accept his order, or, as in the last three examples, find a diplomatic way of saying 'no'.

We would only be prepared to supply on a cash basis.

We only supply on payment against pro-forma invoice.

As there is heavy demand we have very few of these products in stock, and are serving on a rota basis. It seems unlikely that we could deliver within the next four months.

As our plant is closing for the summer vacation we would not be able to process your order for the date you have given. Therefore, regretfully we have to decline it.

I am sorry to say that we must turn down your order as we have full order books at present and cannot give a definite date for delivery.

5.6.3

Unfavourable terms

The supplier may not like the terms the customer has asked for, either for delivery:

Delivery could not possibly be promised within the time given in your letter.

Two months must be allowed for delivery, as we ourselves have to get raw materials and rely on our own suppliers.

Or discount:

It would be uneconomical for us to offer our products at the discounts you suggest as we work on a fast turnover and low profit margins.

The usual trade discount is 15% in this country, which is 5% lower than the figure mentioned in your letter.

The discount you asked for is far more than we offer any of our customers.

Or payment:

We only accept payment by letter of credit.

We never offer quarterly terms on initial orders, even to customers who can provide references. However, we might consider this sort of credit once we have established a trading relationship.

Our company relies on quick sales, low profits, and a fast turnover, and therefore we cannot offer long-term credit facilities.

5.6.4